OPERSEA_"assignment"

Quantitative Analysis

A business or financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically.
Quantitative analysis can be done for a number of reasons such as:
-measurement
-performance evaluation or valuation of a financial instrument
-it can also be used to predict real world events such as changes in a share price
The process of determining the value of a security by examining its numerical, measurable characteristics such as revenues, earnings, margins, and market share.

Decision Theory
Decision theory in mathematics and statistics is concerned with identifying the values, uncertainties and other issues relevant in a given decision and the resulting optimal decision. It is sometimes called game theory.

Decision theory is a body of knowledge and related analytical techniques of different degrees of formality designed to help a decision maker choose among a set of alternatives in light of their possible consequences.

Decision theory can apply to conditions of certainty, risk, or uncertainty. [decision UNDER certainty] means that each alternative leads to one and only one consequence, and a choice among alternatives is equivalent to a choice among consequences.

Decision Tree

A decision tree (or tree diagram) is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences, including chance event outcomes, resource costs, and utility. Decision trees are commonly used in operations research, specifically in decision analysis, to help identify a strategy most likely to reach a goal. Another use of decision trees is as a descriptive means for calculating conditional probabilities.

Forecasting

Forecasting is the process of estimation in unknown situations. Prediction is a similar, but more general term. Both can refer to estimation of time series, cross-sectional or longitudinal data. Usage can differ between areas of application: for example in hydrology, the terms "forecast" and "forecasting" are sometimes reserved for estimates of values at certain specific future times, while the term "prediction" is used for more general estimates, such as the number of times floods will occur over a long period. Risk and uncertainty are central to forecasting and prediction. Forecasting is used in the practice of Customer Demand Planning in every day business forecasting for manufacturing companies. The discipline of demand planning, also sometimes referred to as supply chain forecasting, embraces both statistical forecasting and a consensus process.
Forecasting is commonly used in discussion of time-series data.

Linear Programming

Linear programming, sometimes known as linear optimization, is the problem of maximizing or minimizing a linear function over a convex polyhedron specified by linear and non-negativity constraints. Simplistically, linear programming is the optimization of an outcome based on some set of constraints using a linear mathematical model.